Cutco Pyramid Scheme: 13 Things You Need To Know Before Joining

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Cutco Pyramid Scheme: But Is It Really Though?

What Is Cutco Cutlery?

It’s another one of those MLM (aka Network Marketing, aka Pyramid Scheme) Programs whose main purpose is to sign you up, buy a product kit, then get you to sign up your friends, family, and co-workers to do the same thing.

In my opinion, it’s promoted by quite a few high level MLM member who only gets paid mostly from signing people into the program.

It’s supposed to show you how to become a successful “Network Marketer” but, from what I can tell, most members barely make any money promoting their knives.

As I see it…you won’t get rich off a 50% commission from an over-price set of knives that you can get for half the price at you local department store.  

Now, I want to be completely honest in this review, so… 

Chances are you heard about Cutco Cutlery because someone – a friend or family member – introduced you to the company. Maybe you attended an online workshop or webinar, or maybe an in-person information session. 

Your head’s probably spinning. This might be the first time you’ve heard about a real way to make money outside of a typical job. 

So first off, congratulations! 

You’ve just entered a whole new world…the world of making money on your own terms.

However, you came in through the wrong door. 

Because Cutco Cutlery is – plain and simple – an MLM. Throw whatever fancy name you want on it…multi-level marketing (MLM), network marketing (NWM), direct sales, or anything else, it’s the same concept:

You pay some money upfront for the “opportunity” to sell products. 

The products are typically low-quality but with high price tags (because fancy labels and stuff).

You’re told that the key to building your own successful business is selling these products to friends and family, and getting them on a subscription (so you get “monthly recurring revenue”).

Unfortunately, like most people who get taken in by these types of schemes, you’ll quickly discover that the well runs dry faster than you imagined. 

After all, they make it sound really simple. “Just get 5 people you know onto this magic widget, and things will just grow from there.”

And in your head, you think “How hard can it be? I know plenty of people, 5 will be easy.”

But then you do it, and you realize people look at you like you’ve joined a cult. You’ve become “that person”, who joined an MLM, and is now trying to sell questionable products or services to everyone they meet. 

It puts a strain on your relationships, and you end up stuck between two worlds.

But it’s not your fault. These companies spend millions of dollars each year figuring out exactly how to brainwash and recruit people. And that’s why we’re here. 

Is Cutco A Pyramid Scheme?

So, let’s get one thing straight. 

You’re reading this because you’ve likely heard about Cutco offering $15 an hour.

As more individuals fall victim to scammers, I’ve gotten especially driven to teaching and reviewing money-making business opportunities like this one.

In this article, I will outline the benefits and drawbacks of joining Cutco Cutlery, and eventually address these questions: “Is Cutco a scam, a pyramid scheme, or is it really possible to make much money selling knives?”

We’re going to review multiple aspects of Cutco to decide if it really is the best network marketing platform out there.

We’ll talk about whether network marketing is the right online business model for you.

In the end, I’ll answer some of the most frequently asked questions regarding Cutco and MLMs in general.

Cutco Review: The Overview And Rankings


Founder: Alcoa company in 1949 (now owned by Vector)

Type: Cutlery direct sales company

Products (Including Pricing): 60 out of 100

Success Stories: 30 out of 100

Price To Join: Free- previously $300+ (100 out of 100)

Summary: Cutco is a cutlery and cookware direct sales company that pays you $15 per successful presentation you arrange with potential customers.

Rating: 60 out of 100 

Recommended: No

What Is Cutco Cutlery?

A privately-owned company, Cutco Corporation is a cutlery direct sales company based in New York that sells through Vector Marketing, an MLM or multi-level marketing business model.

Its goal primarily is to provide a business opportunity for stay-at-home parents, students, and employees where they can earn a commission of 10% by selling knives as a side hustle.

They boast of high-quality cutlery and cookware that are all made in the USA and come with a lifetime guarantee.

Founded in 1949, Cutco was a product developed and designed by Alcoa and Case Cutlery.

According to history, Case’ shares were bought by Alcoa in 1972. Consequently, the entire company was then bought by the Alcas management from Alcoa in 1982.

Alcas, in 1985, purchased Vector Marketing Corporation to act as the MLM arm of the company.

What Is Vector Marketing?

Vector Marketing Corporation is the MLM marketing division of Cutco.

The MLM operations are handled by Vector Marketing Corporation and is Cutco and Cutco at Home’s sole distributor.

They target college students, stay-at-home moms, and high school graduates by presenting a potential money-making opportunity which they can conveniently do as a side hustle.

As the MLM arm of Cutco, they, of course, recruit people for them to earn some additional bonuses. In other words, they are recruited for door-to-door selling.

I don’t think being a door to door salesman is something that would work today

Cutco Cutlery Product Line

Selling knives is a part-time job opportunity that’s available with Cutco, one of the leading direct sales companies today.

The Cutco line is a no-brainer for anyone searching for well-designed blades.

In fact, because of the durability and high-quality material used to produce these knives and other kitchen products, they’ve become quite popular.

Vector Marketing provides products in these categories:

  • Kitchen knives: Cleaver, trimmer, table knife, french knife, etc. @ $40-$250
  • Shears: Specialty scissors @ $90 – $120
  • Cookware: Pots, pans, gadgets, baking tools, utensils, cutting boards, etc. @ $40-$2,600
  • Tableware: Cutlery $30-$1,500
  • Outdoor: Hunting knives, pocket knives, sporting knives, garden tools @ $100-$250

Cutco’s flagship product, however, is the Cutco Knife Sets valued at anywhere between $280 – $1,212, featuring a patented recessed “Double D,” 440A stainless steel bladed-recessed edge that can make very precise cuts.

The handles of these knives are made of thermo-resin which is a material that adds dishwasher endurance, strength, and durability.

In my opinion, the main reason why people keep buying knives from Cutco is because of the lifetime guarantee that they offer.

Below are some customer reviews:

Do Cutco Products Really Work?

Based on the many positive reviews I’ve read online, the answer to this is yes! 

Cutco knives do work!

In fact, several online websites recommend them.

This is backed up by the sizable social media following they have, with 96k followers.

If you want to see actual product reviews, you may go to their consumer affairs profile.

But first, let me remind you that I’m only talking about its quality.

The money-making scheme and the recruitment process will be discussed in the following sections. 

Can You Really Make Money With Cutco Cutlery?

Yes, You can!


There’s a lot that comes along with this type of MLM program that many people struggle with.

Now, don’t get the wrong idea…

It’s not impossible to make money selling knives, but if you’re gonna put in the amount of grueling work to do this business (which, trust us, isn’t easy), you might as well bring in some REAL money while you’re learning the ropes.

But if you’re serious about Cutco,  let’s take a closer look… 

Cutco Cutlery membership process is pretty easy because it’s free.

About twenty years ago or so, agents were required to buy a kit for their presentations. Thanks to Cutco, they provide this kit for free for as long as you are an “active representative.”

The company is able to cut costs in marketing and advertising by recruiting people instead to do the promoting and selling.

You can earn a commission of 10% by doing this.

But first, what does it mean to be an active representative?

From what I’ve gathered, active sales reps are agents who are required to make a $100 worth of cutlery or cookware sales each month.

If the sales representatives fail to meet this requirement, they will have to return the kit or buy it for half the cost.

But what about the $15 per hour advertisement?

This is an outright overhyped ad.

What they really mean by it is that you can earn $15 for every successful in-person appointment with prospective buyers and members.

Sales reps would require their prospective buyers and members’ phone numbers and email addresses to be stored in their client database.

The actual process is quite easy:

  1. You will undergo multi-step interview process.
  2. They will give you a three-day training course after you have been hired.
  3. They will request a list of referrals from you.
  4. They will supply you with a sales script and presentation to reach out to your potential clients.
  5. Earn from 10 to 50% commission on all sales (or the guaranteed base pay of $15, whichever is more).

Cutco Cutlery’s Compensation Plan

If you go to Cutco’s official website, you’ll see that they emphasize that the business opportunity they offer isn’t a “get-rich-quick” gimmick.

Instead, it takes pride in qualities such as perseverance, effort, and commitment.

As such, Cutco states that the money you make from this side gig is highly dependent on your persistence and grittiness to sell.

The commission structure is shown in the table below based on the number of sales:

But Wait! What’s The “Cutco At Home” Compensation Plan?

According to my research, Cutco uses two types of compensation plans:

  1. Basic Cutco Compensation Plan
  2. Cutco At Home Compensation Plan

With the Cutco At Home Compensation Plan, there are two ways you can earn:

  1. Sales Commissions
  2. Bonus generated from your downline sales

Cutco Cutlery Ugly Truths Revealed

There are several downsides to Cutco’s money-making program which I want to highlight here.

Below are three three “ugly truths” about this business model that I find really sketchy:

  1. Cutco products are so expensive. Even if they are of high-quality material and craftsmanship, I still think that they are ridiculously overpriced.
  2. Cutco uses very old-fashioned sales tactics. Their salespeople go door-to-door and are given scripts which I strongly feel are not enough to make significant sales in our technology-driven industries.
  3. Earning a passive income is just not feasible with Cutco’s compensation plans.

What Do I Like About Cutco Cutlery?

I’ve highlighted some of Cutco Cutlery’s major benefits below:

  1. They do pay you $15 per successful appointment. This is one thing that they promise they would do if you make client presentations and may make even more if your prospects make a purchase.
  2. There’s a lot of positive feedback about Cutco’s product quality. People are even recommending them. And what makes it stand out is the fact that chefs across the globe are either using them and recommending them as well.
  3. To top it off, they have a large social media following, with 96k followers to be exact. These are some of the things that make a product or service trustworthy. To quote one particular review from a user from Los Angeles, “These knives are high quality pieces with very classy handles and come in multiple colors. I started cooking more once my knives arrived. I was also pleasantly surprised to find out Cutco sells gardening tools and other items.”
  4. Cutco provides proper sales training for every new recruit. They are provided with a well-written starter sales pitch script which you can customize as you deem necessary. Through this training, your leadership and sales skills are developed.
  5. In 2016, Cutco became one of the top 20 Direct Selling Associations.

Bottom Line: Is Cutco A Scam Or A Pyramid Scheme?

So, is Cutco Cutlery a scam? 

Not technically. You can make money with this program, but it’s definitely not as easy as the company makes it sound. 

There’s a ton of work to be done upfront, no real guarantee of success, and – most importantly – the actual commissions are pretty small. 

Now, there’s nothing wrong with front-loading the work and making the money later.

But if you’re grinding it out for 3 months and then your reward is a $50 commission, it’s not really worth it.

What if, instead, you could do that same 3 months of work (in your spare time), and your reward was a $500 to $2,000 payment that came in every single month?

And what if you actually didn’t need to wait 3 months? What if you could get started today and have your first payment in a week?

And what if you could double it next week?

Are There Any Alternatives To Cutco Cutlery?

Yes, there are plenty of MLM companies to choose from if you want to pursue this business model.  Here are just a few: 

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I am Sammy. I strive to keep you in the know of all newest internet scams. Feel free to leave us a comment.

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